Causes of Crime

[merrylander]

Originally Posted by ZeroJunk

For years people complained because they could not get a loan. And, then they complained because they could.

Anyway, there was a government push over decades including the Bush administration for everybody to be able to own their own home.

Mortgage backed securities, Freddie & Fannie , collateralized debt obligations, credit default swaps etc. were created to finance all of this because traditional methods simply would not work on this scale.

And, yes a bubble was crated.

Plenty of blame to go around, but Joad complaining about bankers because people of his type defaulted on loans they had committed to pay for is some more of that mindless BS he usually comes up with.

Like, I'm not going to make payments on this house anymore but I am going to just keep it anyway.

Well y'all created this half assed mortgage system. The laughable part of it all is that (on a per capita basis) home ownership is marginally higher in Canada then it is here.

They don't have mortgage brokers

They don't have Title companies.

Mortgages are 25/5 or less.

Fortunately the also do not have Wells Fargo and Bank America either (In case you were looking for the real culprits).

Because our credit scores were above 800 our mortgage (when we still had one) got bundled so many times just to make the securities look sweet we ended up with a new 'bank' every year.

If I was trying to design a system wide open to fraud it would be the system we have here.